Straw Boss has it right. It can't be "Just Business" when it fits your agenda and "Morally Wrong" when it doesn't. Talk to the guy and get the details before you panic and start hacking some ones lively hood.
Do you in fact know the Uncle is subrenting to the Nephew? Maybe the Uncle is helping the Nephew get started in farming. That might need to be looked at as respectable instead of underhanded.
Way too many details unknown here to make much of a valid opinion. Granted, you are not obligated in any way, but I agree with Straw Boss, it's kind of chicken siht to just drop the guy without at least giving him a chance to improve.
Again, way to may details unknown. Good luck with what ever you do, however. Bob
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